Zug, 05.04.2019

Canton records surplus of CHF 149.2 million

The canton has recorded a surplus of CHF 149.2 million for the year 2018, far more than the CHF 1.7 million expected.

The figures show that cutbacks of CHF 20.6 million were able to be made with funds flowing in to the tune of CHF 127 million. Commenting on the overall result, Heinz Tännler, the cantonal director of finance, said how important it had been to exert strict discipline over finances. He continued by saying that much was due to the overall improved economic situation and higher-than-average growth. In addition to this, there were dividends from the Zuger Kantonalbank and a profit dividend emanating from the Swiss National Bank.

 

 

What is more, it was noted how a number of high-net-worth individuals had moved to the canton, then there were unexpected one-off effects which led to increased income, too. In addition to all this, five internationally active companies recorded higher profits than in 2017; owing to fiscal confidentiality these cannot be named. Other sources of income came, for example, from the tax levied on the one-off sale of privately-owned property, and post-payment of taxes, too.

As to future budgeting from 2020, cutbacks amounting to CHF 52 million had been envisaged, but bearing in mind these latest figures, it is thought these will not need to be as high. Of these cutbacks, CHF 8 million was able to be saved through less spending on cantonal staff, and the Zug Police faced cuts of CHF 1.4 million, too.

Furthermore, with a CHF 5 million increase in funding from the canton in 2020 it is expected 3,000 people will be able to take advantage of the raising of a salary-related threshold, below which certain benefits will be able to be claimed, and a further 3,000 able to claim for a reduction in their medical insurance fees.

Tännler concluded by re-iterating how important it was for the cantonal government to keep finances under strict control.